This comes up a lot, and it’s easy to see why. Gold feels like something private. You buy it, you store it, and it sits there quietly doing its job. So the idea of having to tell HMRC about it can feel a bit unexpected.

The short answer is: you don’t have to declare gold just because you own it. But you might need to declare it when you sell it, depending on what type of gold you hold and how much profit you make. Let’s go through the details.

Buying Gold: Nothing to Declare

When you buy physical gold in the UK, there’s no requirement to report the purchase to HMRC. Investment gold is VAT-free, so there’s no VAT return to file. And simply owning gold isn’t a taxable event. You could buy a single gram or a hundred ounces and HMRC wouldn’t need to know about it.

There’s no gold register, no mandatory disclosure, and no limit on how much you can buy. It’s your money and your gold.

Selling Gold: This Is Where It Gets Interesting

The point at which HMRC might become relevant is when you sell your gold at a profit. That’s because any profit you make could be subject to Capital Gains Tax (CGT).

Here’s how it works. If you sell an asset for more than you paid for it, the difference is a capital gain. You get a tax-free annual allowance each year (currently £3,000), and any gains above that threshold are taxable. The rate depends on your income tax band.

So if you bought a gold bar for £1,500 and later sold it for £2,200, you’ve made a £700 gain. If that’s your only capital gain in the tax year and it falls within your annual allowance, there’s nothing to pay and nothing to report.

But if your total capital gains across all assets exceed the annual allowance, you’ll need to report them to HMRC through a Self Assessment tax return.

The Big Exception: Legal Tender Coins

Here’s where it gets good for UK gold buyers. Certain coins issued by The Royal Mint are classified as UK legal tender, and legal tender is exempt from Capital Gains Tax. Completely.

The most popular examples are Gold Britannias and Gold Sovereigns. Because they technically have a face value in pounds sterling (even though nobody would ever spend them at that value), any profit you make when selling them is CGT-free.

That means no tax to pay and no obligation to report the gain to HMRC. It doesn’t matter how large the profit is.

This is one of the main reasons experienced UK investors tend to favour Britannias and Sovereigns over bars. The tax benefit is real and it can save you a significant amount of money over time, especially as gold prices rise.

What About Inheritance Tax?

This is another area people often wonder about. Physical gold, whether coins or bars, forms part of your estate when you die. That means it can be subject to Inheritance Tax (IHT) if your total estate exceeds the nil-rate band (currently £325,000, or up to £500,000 with the residence nil-rate band).

There’s no special exemption for gold here. It’s treated the same as any other asset you own. If your estate is large enough to trigger IHT, your gold holdings will be included in the valuation.

It’s worth factoring this into your broader estate planning, particularly if you’re building a substantial gold position over time.

Do Dealers Report Sales to HMRC?

UK gold dealers are not required to report individual customer purchases to HMRC as a matter of course. However, dealers do have obligations under anti-money laundering regulations. This means they’ll carry out identity checks for certain transactions, and they’re required to report any suspicious activity.

But routine purchases and sales of investment gold don’t get flagged to the taxman automatically. The responsibility for reporting any taxable gains falls on you as the individual.

What About Gold Stored Abroad?

If you store gold overseas, it’s still part of your worldwide assets for UK tax purposes, assuming you’re a UK tax resident. The same CGT rules apply when you sell, and it still counts toward your estate for IHT.

Storing gold in another country doesn’t change your tax obligations in the UK. It might add some complexity to your record-keeping, but the rules are the same.

Keeping Good Records

Even though you don’t need to declare gold purchases, it’s a really good idea to keep records of what you buy, when you buy it, and how much you pay. Hold on to invoices and receipts.

When the time comes to sell, you’ll need to know your original purchase price to calculate any gain accurately. Without records, you could end up overpaying on tax or struggling to prove your cost basis if HMRC ever asks.

This is especially important if you’re buying gold regularly over a period of years. Prices change, and you’ll want a clear trail.

A Quick Summary

You don’t need to tell HMRC when you buy gold. You may need to declare a capital gain when you sell gold bars or non-legal-tender coins, but only if your total gains exceed the annual CGT allowance. Gold Britannias and Sovereigns are completely exempt from CGT, so gains on those never need to be reported. Gold forms part of your estate for Inheritance Tax purposes. And regardless of the rules, keeping good records is always a smart move.

The Practical Takeaway

For most UK buyers, the simplest approach is to focus on CGT-exempt coins like Britannias and Sovereigns. That way, you don’t need to worry about tracking gains, calculating tax, or filing anything extra with HMRC. You buy, you hold, and when you sell, the profit is yours to keep.

If you do buy bars or other non-exempt gold, just be aware of the CGT rules and keep your paperwork in order. It’s not complicated, but it does require a bit of discipline.

At SMP Bullion, we’re always happy to help you understand the practical side of buying gold in the UK. While we can’t offer formal tax advice, we can point you in the right direction and make sure you’re buying with confidence.